Over 60% of Nigeria’s ₦1.7 trillion domestic debt service in Q2 2025 was spent on Federal Government Bonds

Key Takeaways

  • FGN bonds dominated: ₦1.07 trillion went to Federal Government Bonds, accounting for about 63% of total domestic debt servicing.
  • Treasury bills followed: Payments on NTBs reached ₦537.9 billion, making up roughly 31% of the total.
  • Sukuk and promissory notes together cost ₦90.8 billion, reflecting Nigeria’s mix of infrastructure and settlement instruments.
  • Green and savings bonds remained minimal, together below ₦5 billion, showing limited traction for retail and sustainability-focused debt.

Between April and June 2025, Nigeria spent around ₦1.7 trillion repaying domestic debts, underscoring its reliance on internal borrowing to fund fiscal operations. FGN Bonds remained the government’s primary financing tool, taking up nearly two-thirds of total debt servicing, followed by Treasury Bills, which cover short-term funding needs.

Meanwhile, niche instruments like Sukuk, Promissory Notes, FGN Savings Bonds, and Green Bonds accounted for less than 6% combined, a reminder that while Nigeria has diversified its borrowing instruments, the debt burden still leans heavily on conventional bonds and bills. The pattern mirrors a government strategy balancing liquidity needs with long-term financing, but it also highlights persistent fiscal strain driven by high domestic interest obligations.

Source:

Debt Management Office

Period:

Q2 2025
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